Here's how you can maintain resilience in the world of Venture Capital amidst criticism or feedback.

I played a lot of sports as a kid. And I love to work with people who were also athletes. I find that athletics teaches lots of great things: teamwork, collaboration, drive, discipline and more. Critically, people who grew up playing sports understand how to compete. How to win. And, importantly, how to lose. Losing is a part of sports. Even the greatest dynasties in history - think the 1920s NY Yankees or the Michael Jordan-led Chicago Bulls - still lost 25% - 40% of the time. Baseball is a crazy example of this where you can fail 7 times out of 10 and be an all-star. So, when it comes to venture, you need to understand the nature and dynamics of the sport we're playing. Failing isn't personal. It's just part of the game.

You do not learn as much from success, as you do from failure -- embrace it. What does that mean? Success is a singular pathway, with minimal change/adaptation to changing variables. There is no such thing as overnight success. It is the culmination of lessons learned from failure, and constant effort that further reinforces the layers of good decisions that is perceived as success.

My entire journey is filled with experiences and lessons that make me the unique man and executive that I am today. I have found that some of the more transformational moments in my life...Some of the most golden lessons and values were forged during times of failure. Most success is built upon the lessons learned along the way. The most important lessons are often the hardest to accept in the moment but become the most valuable in hindsight.

It's crucial to embrace failure! Recognize that not every investment will be a win, and failure is part of taking risks. By accepting this, you can soften the blow of criticism and see negative feedback as a chance to learn. Analyze what went wrong without taking it personally, and use those lessons to improve future decisions. This approach not only helps you develop a stronger investment strategy over time but also boosts your psychological resilience, enabling you to bounce back and move forward with greater insight and determination.

Imagine you're on your first big venture as an investor. You pour your heart into a startup that seems promising but ends up crashing and burning. We’ve been there too. Early in my career, I backed a company that seemed destined for success. We were all in, but things didn’t pan out. It felt like the end of the world, but in reality, it was just the beginning. That failure taught me more about resilience, adaptation, and humility than any success ever could. Embracing failure isn’t about accepting defeat; it's about extracting the lessons that shape future victories. Every setback is a setup for a comeback.

Wise is not the man (or woman) who learns from their own mistakes, rather the one who learns from others. The lesson from the adage above is each pathway an individual takes provides a unique perspective of learning. To embark on those journeys would take multiple lifetimes, quite literally. Mentorship gives you the opportunity to not just receive the important lessons from that journey, also the unique challenging/questioning perspectives to help steer your journey to a more comprehensive and deliberate path.

Key in VC is to seek out mentors! Having experienced guides by your side can make navigating the industry's challenges much easier. They offer valuable perspectives that help you turn criticism into constructive feedback. Having faced similar obstacles, they can share practical advice on how to recover and what to watch out for. Building relationships with mentors provides you with a strong support system, boosting your confidence and resilience when dealing with tough feedback. Their insights and encouragement can be invaluable as you navigate your career in venture capital.

This is a very long-term game. Feedback cycles can stretch to a decade or more. The old VC joke about how is "only takes 10 years and $100M to figure out if you're any good at VC" is grounded in the reality of an industry with long feedback loops. In this environment, mentors and "friend-tors" (friends who are just 1-2 steps ahead of you, or even in your own peer group) are tremendously important. Cultivate them.

Find Experienced Advisors: Connect with seasoned VCs who can provide guidance and support. Regular Check-ins: Schedule regular meetings with mentors to discuss challenges and seek advice. Leverage Networks: Use your network to find mentors who have navigated similar challenges.

I do not completely agree with this statement. Diversification to prevent loss is a defense tactic. It should be taken partially not entirely. "The best defense is a good offense". Note this does not imply recklessness rather to be deliberate in your forward thinking actions and it will have more of an impact than being too cautious. Your investment thesis should be robust, deliberate, and adhered too. Diversification becomes necessary when the your thesis is too narrow and does not have the foresight to stay relevant.

Don’t forget to diversify your investments! Spreading your investments across different sectors and stages reduces the impact of any single failure. This approach helps cushion the blow from negative feedback on specific deals because your portfolio isn't reliant on just one venture. By diversifying, you can handle criticism more easily, knowing that your overall investment health remains strong. This strategy not only mitigates risk but also helps you maintain confidence and resilience in the face of setbacks.

Spread Risk: Invest in a diverse portfolio to mitigate the impact of any single failure. Explore Various Sectors: Invest in different industries to increase the chances of finding successful ventures. Balance Risk and Reward: Include a mix of high-risk, high-reward and safer, lower-reward investments.

In my humble opinion, diversification in VC is slightly different than public equities in that early stage startups often have barely started to earn revenue so one could be invested in multiple sectors with many of them failing. However diversification can still be harnessed via startups in different phases, sectors, industries, global regions, and within various stages of a particular value chain.

Nothing stays the same that will be relevant. The same goes for you. As a potential investor know that the best investment you can make is in yourself. How can you expect to be a savvy investor in emerging technologies when your knowledge base is dated by 10-20 years?

In venture capital, to stay resilient in the face of criticism you need to continuously learn. Keep up with industry trends, emerging technologies, and shifting market dynamics. This ongoing education helps you make smarter decisions and cushions you against criticism. By understanding the bigger picture, you can better determine if feedback is valuable or just noise. Knowledge empowers you to adapt your strategies and navigate challenges confidently. Embrace every learning opportunity to sharpen your insights and enhance your resilience in this fast-paced field.

ABL = "Always Be Learning" This mindset is tremendously important to success in Venture Capital, and, honestly, in life. Embracing the idea that "what got you here won't get you there" and being willing to question your own assumptions (even those that have been core or fundamental in the past) inform your ability to continuously learn. This improves the quality of your thinking, the quality of your decision-making, and your ability to cultivate a "culture of learning" within your firm or company.

Stay Informed: Keep up with industry trends, new technologies, and market shifts. Educational Resources: Engage in workshops, courses, and conferences to enhance your knowledge and skills. Feedback Loop: Actively seek feedback from peers, mentors, and stakeholders to continuously improve your strategies.

The worst things you can do when presented with criticism is to ignore it or react negatively too it. Ask or time to internalize -- may feel awkward, people may respond negatively, though it will give you an opportunity to understand their perspective, assess personal blind spots, and if they were wrong at least you can try to understand why you came across negatively.

In VC, criticism is your currency. Develop a thick skin, but a keen ear. Analyze feedback: is it valid? Can it improve your decision-making? If so, adapt. If not, let it roll off. Focus on long-term goals, celebrate wins (big & small), and learn from losses. Resilience comes from confidence in your process, not every pick.

I suppose this is why in military boot-camp, there was so much yelling chaos and negative feedback. In the chaos of war, one must be able to absorb the hellishness while keeping a level head. It's the same with criticism; also there's an eastern philosophical aspect of learning to curb the ego and understand that like the Japanese principle of kaizen, mistakes can be reintegrating back into our learning and development.

Regular Reflection: Take time to reflect on your experiences, both successes and failures. Mindfulness Practices: Incorporate practices like meditation and journaling to maintain mental clarity and emotional balance. Set New Goals: After setbacks, reset with new goals and a clear action plan to stay focused and motivated.

Remember: Criticism in venture is a *feature*, not a bug. Anyone willing to provide feedback/criticism is showing you that they care about your ongoing/future development. Does that mean all criticism will be delivered well or resonate deeply with you? No. But, someone offering their feedback — especially someone you admire/respect — is a gift that opens the door to meaningful self-reflection and growth. It's far easier for a VC to remain indifferent rather than offering up suggestions/feedback, so treat this criticism with optimism. Look for how this critique can contribute to future relationship building, help you avoid common pitfalls, or provide more clarity to your next steps. My mantra: Criticism = Opportunity; Indifference = Death.

Positive Mindset: Focus on the positive aspects of your work and the potential for future successes. Celebrate Wins: Acknowledge and celebrate small and large victories to maintain morale. Supportive Environment: Surround yourself with positive, supportive people who encourage and uplift you.

My favorite poem - Desiderata by Max Ehrmann - has a line counseling to "nurture strength of spirit to shield you in sudden misfortune." I think of this as maintaining these deep wells of optimism and self-belief that will get you through the (metaphorical) deserts, droughts and famines that we all must traverse in business and in life. My team still teases me about just how resolutely optimistic I am about things. But I think of it like this: we all get a choice about how to direct our energy. We can't control what happens to us. But we can control what we do about it. So, cultivate serendipity. Lean into the good. Create your own luck.